01826cam a22002537 4500001000600000003000500006005001700011008004100028100002000069245011400089260006600203490004100269500001800310520081000328530006101138538007201199538003601271690005001307700002401357710004201381830007601423856003701499856003601536w3949NBER20161209133527.0161209s1992 mau||||fs|||| 000 0 eng d1 aBayoumi, Tamim.10aShocking Aspects of European Monetary Unificationh[electronic resource] /cTamim Bayoumi, Barry Eichengreen. aCambridge, Mass.bNational Bureau of Economic Researchc1992.1 aNBER working paper seriesvno. w3949 aJanuary 1992.3 aData on output and prices for 11 EC member nations are analyzed to extract information on underlying aggregate supply and demand disturbances using a VAR decomposition. The coherence of the underlying shocks across countries and the speed of adjustment to these shocks are then compared to the results from US regional data. We find that the underlying shocks are significantly more idiosyncratic across EC countries than across US regions, which may indicate that the EC will find it more difficult to operate a monetary union. However a core of EC countries, made up of Germany and her immediate neighbors, experience shocks of similar magnitude and cohesion as the US regions. EC countries also exhibit a slower response to aggregate shocks than US regions, presumably reflecting lower factor mobility. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aF03 - 2Journal of Economic Literature class.1 aEichengreen, Barry.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w3949.4 uhttp://www.nber.org/papers/w394941uhttp://dx.doi.org/10.3386/w3949